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Cancana and Ferrometals Update Phase One Exploration Program at BMC Project

Cancana Resources Corp. with its joint venture partner Ferrometals provided an update on Phase One exploration at their Brazil Manganese Corp. project in Rondônia, Brazil.

The Company has received final aerial geophysics survey data and initial assays from drilling. The results are positive and confirm the Company's operating geological model that supports the existence of significant, high-tenor mineralization at depth similar to the surface boulders currently being processed.

Highlights from this data and initial interpretations are as follows:

Aerial Geophysics

  • Processing of the aerial geophysics survey data has successfully highlighted the underlying basement structure.
  • 211 strike kilometers of prospective fault systems identified, with additional trends under evaluation.
  • Current analysis highlights 62 manganese target areas along these structures based on enhanced conductive response.

Phase One Drilling

  • 38 drill holes were completed for 2,084 meters, with results from the first two of eight targets received to date.
  • Phase One drilling confirmed the Company's geological model that the manganese mineralization persists at depth in structurally-controlled, hydrothermal veins at the same tenor to that seen at surface.
  • The mineralized veins are confirmed to be the source of surface colluvium.
  • Manganese oxide phases persist below the base of weathering to a vertical depth of at least 70 meters.
  • Structures intersected in position predicted by geophysical models.
  • Massive mineralization returns grades similar to surficial material:
    • DDH_J3_001: 3.1m @ 48.9% Mn, incl. 1.9m @ 57.8% Mn from 32.2m
  • Phase Two exploration drilling has commenced.

Anthony Julien, Cancana's President and CEO, stated, "These early-stage results exceeded our expectations. We expected to find evidence of high-tenor mineralization at depth similar to surface mineralization, but the identification of an abundance of additional targets and more than 200 km of additional fault systems is welcome indeed. Our shareholders can be pleased by these initial results, as we will be expanding drilling activity with the objective of delineating an initial resource in 2016."


The BMC project area is being tested for a different style of manganese mineralization to the "sedimentary" deposits for which Brazil is generally known.

Sedimentary deposits have mixed oxide and carbonate ore types. Carbonate ores are lower grade, but can weather to form shallow enriched oxide caps. Ores are used extensively in the steel industry. Blending is sometimes required to manage impurities (phosphorous, iron and silica).

The BMC project area was targeted in the belief that high-grade manganese colluvium in the district was sourced from underlying hydrothermal veins, representing a different deposit style. Such ores have lower phosphorous and iron contents, giving rise to niche applications in the steel, fertilizer, and battery industries. Examples of this deposit type include Woodie Woodie (Australia), and various deposits of Mexico (e.g. Talamantes and Lucifer Districts).

Key objectives of the exploration program to date have been:

  • To identify the position of prospective structures through geophysics.
  • To demonstrate that manganese oxides persist in vein structures at depth.


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